Prithviraj Chavan seeks RBI help on infra projects

With big ticket infrastructure projects in trouble, chief minister Prithviraj Chavan in his meeting with new RBI governor Raghuram Rajan at the state guesthouse, Sahyadri, on Friday, sought help from banks on their financial structuring.

The city’s major infrastructure projects such as the Mumbai Metro and Mumbai Transharbour Link have either been delayed or are yet to take off. “Referring to the failure in retaining the interest of private developers in the projects, Chavan said there was a gap in the way the projects have been financially structured by the consultants. He said that it had led to a trust deficit and confusion between the government and the private developers, thus affecting their viability,’’ said a senior official.

The help from banks, who understand how the public sector functions, could make them more viable, Chavan suggested at the meeting.

It is learnt that Rajan agreed with Chavan that banks could play a proactive role in structuring of mega infrastructure projects. The RBI governor told the minister that he wanted to hear him out over his concerns for the state and the ways in which the RBI could intervene.

Expressing concern over the slowdown, Chavan also sought help from banks to protect the employment opportunities at the small and medium enterprises in the state and avoid mass retrenchments. He also discussed the freeze on recruitments and requested Rajan for positive intervention.